The ATI will have a $105m pool of funds to cover political risks including losses caused by war or civil disorder.

Any payments on claims by investors will be drawn from the capital loaned by the World Bank to the ATI's members.

This is designed to apply pressure to those governments to ensure they maintain stability in their countries and clamp down on corruption.

The founding members are Uganda, Tanzania, Malawi, Rwanda, Uganda, Zambia and Kenya and the International Development Association, the concessional lending arm of the World Bank, which has put up $5m.

President Thabo Mbeki of South Africa, will meet his counterparts from Mozambique, Botswana, Malawi, Tanzania and Kenya at the summit to discuss "Enhancing the Climate for Foreign Direct Investments through Smart Partnership".

Malaysian Prime Minister Mahathir Mohammed, who has championed the idea of Smart Partnership, is also expected to attend.